Effectiveness of Coca Cola to Japan and Hong Kong
Product
Product ranges offered by businesses have to be managed within the context of an ever-changing business environment (Gillooley & Varley 2001). Introducing new products is a very good way of achieving differentiation and enhancing a retail identity in an over-subscribed retail market, but without corporate support new products may fail or go unnoticed (Gillooley & Varley 2001). Selecting the right product requires an understanding of the complexity of the modern shopper and an ability to blend product detail in a way that satisfies both the physical and the psychological needs of that shopper (Gillooley & Varley 2001).Coca Cola’s product in Japan includes Coke, Diet Coke, Fanta, Sprite, Georgia Coffee, Aquarius, Sokenbicha ready-to-drink tea, and Coke Zero. Coca Cola’s product in Hong Kong includes Coca-Cola, Fanta, and Sprite. Diet Coke, Tianyudi (Heaven and Earth), and Xingmu (Smart),
Price
The market pricing approach is used when the environmental improvement under consideration causes an increase or decrease in real outputs and/or inputs (Hussen 2000). Price range differs from one place to another due to transportation cost, storage cost and other economic consideration. The price of Coca Cola’s products in Japan ranges from 50 Yen to 200 Yen depending on the place where the product is sold. The price of Coca Cola’s products in Hong Kong ranges from 12 Hong Kong Dollar to 20 HKD.
Place
The factors which determine choice of a channel, or channels, of distribution are both external and internal to the organization. These factors show how the options open to organizations are restricted. For example, small companies may not have the resource or expertise to become involved in foreign direct investment; markets with low break-even sales volumes favor low-cost channels such as licensing or exporting (Mccall & Stone2000). To attain sales, profitability, and customer-satisfaction goals, the products must be available for customers to purchase. The portion of a firm’s marketing strategy that assures customers have access to the firm’s products is known as distribution strategy, and the institutions that take part in product distribution comprise the marketing or distribution channels for those products. Traditional channels may not always work (Reddy 1997). Coca Cola in Hong Kong and Japan allows its product to be sold in different stores and locations that is accessible to clients. Coca Cola’s products are available in a store’s display or in vending machines. The different branches help in making sure that the company is able to sell to various clients in different places.
Promotion
Advertising forms the central plan of most communications programs. The information conveyed in advertisements may be in the form of words or symbols. It can work to educate, persuade or simply to inform. An image can be supported or created, enquiries can be elicited and the functions of a product can be demonstrated. Advertising is far more likely to reinforce rather than create a good image (Ruskin-Brown 1999). A strong image is a function of the positive experiences which people have with a product or company. Attempts to create a positive image, while providing poor products or services, are likely to make customers cynical. A common mistake made in advertising is the tendency to over promise. While a creative advertisement may make a consumer buy a product once to try it, it cannot force them to repurchase. Thus, if a product does not deliver on the promise made in the advertisement this too will create resentment and negative feelings (Ruskin-Brown 1999). Coca Cola in Japan and Hong Kong uses various promotional products. One is through the internet wherein the website helps in promoting the products; another is through TV commercials wherein the product is given a visual presentation for clients to see the characteristics of the product. The different promotional techniques used by the company helps in increasing the number of clients of the company.
Marketing tactics that further enhances Coca Cola’s effectiveness
It appears that international marketing involvement requires a different entrepreneurial effort than the traditional technological or marketing entrepreneurial effort (Hills 1994). International marketing requires a lot of dedication to pursue an effective change to the business. A company needs to have international marketing to achieve its goals. To maintain the success of the company in the global market and to maintain the company’s effectiveness in the 2 countries there are many things that can be done.
New methods to advertise itself
The company to increase profitability in the two countries must first add new methods to advertise itself to people. The company can make additional use of TV and newspaper advertisements to showcase its products to people as well as to show the effect of the use of their product to people. The company can also use more internet advertisements. They can collaborate with internet companies and post advertisements and reminders on other companies’ site. This may cause the company more finances but it may help the company in increasing its profits. Coca Cola can organize advertising tours that aims to travel to various places in Hong Kong and Japan that has low sales output.
Increase skills in communicating with clients
The company should also increase its knowledge of communicating with the clients in the two countries to increase the company’s camaraderie with them. The company’s relationship with international clients is important because the international clients are the one that can make the international expansion successful or it can make it fail. Coca Cola should devise ways provide additional knowledge to their employees regarding how to deal with clients in this 2 countries. The clients in these two countries have different communication skills and they use a different kind of language thus the employees should be taught on how to communicate with the clients in the native language. The employees should also know how to pronounce their language well to prevent problems with the people.
Promote healthy products
The company can promote healthy products and they must make sure that their products won’t give any problems to the ones using it. The company should take a look at how their products in Hong Kong and Japan would be free from dangerous substances that would cause health issues. This would reduce the criticisms towards the company and it would improve their market.
Make use of special promotional techniques
Lastly it should make use of special promotional techniques especially during days where they have low turnout of clients. There are certain days wherein the number of clients purchasing their products is low; what the company can do is to lower its rates or have special discounts or promos during these days to increase the number of clients purchasing the products.
References
Gillooley, D & Varley, R 2001, Retail product management,
buying and merchandising, Routledge, London.
Hussen, AM 2000, Principles of environmental economics:
economics, ecology and public policy, Routledge, London.
Hills, G 1994, Marketing and entrepreneurship: research
ideas and opportunities, Quorum Books, Westport, CT.
Mccall, JB & Stone, MA 2004, International strategic
marketing: an European perspective, Routledge, New York.
Reddy, AC (ed.) 1997, The emerging high-tech consumer: a
market profile and marketing strategy implications, Quorum
Books, Westport, CT.
Ruskin-Brown, I 1999, Mastering marketing: a comprehensive
introduction to the skills of developing and defending your company’s revenue, Thorogood, London.
The Coca Cola Company 2007, Company profile, viewed 05 October, 2007, < www.cocacola.com>.
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